The Most Basic Principle in Selecting the Type of Test

question 2

Multiple Choice

The most basic principle in selecting the type of test items and assessment tasks is to select item types that are

• A)the most direct measure of the intended learning outcome.
• B)easy to construct.
• C)the most challenging for students to answer in a short time period.
• D)liked best by students.

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Definitions:

Interest Rate Parity

A theory stating that the difference between the interest rates of two countries is equal to the differential between the forward exchange rate and the spot exchange rate of their currencies.

Forward Exchange Rate

An agreed exchange rate for a currency transaction that will occur at a future date.

Spot Exchange Rate

The current price for exchanging one currency for another, available for immediate delivery.

Interest Rate Parity

An economic theory that suggests the difference in interest rates between two countries will be equal to the difference in exchange rates between their currencies.